repare a worksheet 05) *E17-10 Comparative balance sheets for Eddie Murphy Company are presented below. EDDIE MURPHY COMPANY Comparative Balance Sheets December 31 Assets 2010 Cash $ 63,000 Accounts receivable 85,000 Inventories 180,000 Land 75,000 Equipment 260,000 Accumulated depreciation (66,000) Total $597,000 2009 $ 22,000 76,000 189,000 100,000 200,000 (42,000) $545,000 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total $ 34,000 150,000 214,000 199,000 $597,000 $ 47,000 200,000 164,000 134,000 $545,000 Additional information: 1. Net income for 2010 was $125,000. 2. Cash dividends of $60,000 were declared and paid. Exercises: Set B 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4. Common stock was issued for $50,000 cash. 5. Depreciation expense was $24,000. 6. Sales for the year were $978.000. Instructions Prepare a worksheet for a statement of cash flows for 2010 using the indirect method. Enter the reconciling items directly on the worksheet, using letters to cross-reference each entry